My take on it is that those who spent $400+ on a Blue Ray player were more inclined to spend the higher asking prices for blue ray discs as opposed to sd dvd. With HD DVD being more budget orientated, the $30-$35 asking price for hd dvds is hard to swallow for some owners (at least it is for me
), and so sd dvds will still be purchased for a while. When/if the prices of hd dvds start coming down, the more budget orientated hd dvd players will sell even more and the software sales will grow.